qucal [UII I I Consider the following setup fora perfectly competitive market: Suppose that for the rm, TC = 525 + Q2 and MC = 20, and for the industry, demand is given by P = 100 Q and supply is given by P = Q. Solve for the market output and corresponding price. 0 (1:50, P=50 o 0:25, P275 0 0:?5, P=25 o 0:50, P=25 QUESTION 12 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC=625 + 0- and MC=20, and for the industry, demand is given by P = 100-O and supply is given by S = Q After having solved for market price, determine the firm's profit maximizing level of output and the corresponding profit. O Q=50, Profit=0 O Q=25, Profit= - 30,000 O Q=25, Profit=0 O Q=50, Profit=50QUESTION 13 Consider the following setup for a perfectly competitive market: Suppose that for the firm, TC=625 + 02 and MC=20, and for the industry, demand is given by P = 100 - O and supply is given by S=Q Judging from the profitability of the firm, do you think this market outcome is sustainable in the long run? That is, do you expect firms to enter the market, leave the market, or leave the market? O Firms will enter the market. O Firms will leave the market. O Firms will neither leave nor enter the market. O There could be barriers to entry.QUESTION 14 Consider the following setup for a perfectly competitive market: Suppose that for the firm, 7C =625 + Q- and MC =2Q. For the industry, suppose that supply is given by S = Q . However, suppose now that there is an increase in demand, so that demand is given by and for the industry, demand is given by P = 500- Q. Will this market outcome be sustainable? That is, do you expect firms to leave the market, enter the market, or neither? O Firms will enter the market. O Firms will leave the market. O Firms will neither enter nor leave the market. O There could be barriers to entry